Many new Colorado residents do not really understand the law with regard to the required auto insurance coverage. Every state has laws regulating how much liability insurance one must have in order to comply with the law of their particular state. These laws are designed to provide insurance if someone is seriously injured or killed in a car accident. Many new residents will buy the cheapest insurance they can buy as the insurance agents just want to sell an insurance policy and do not always advise their clients on what is best for their financial situation.
As an experienced lawyer of over 10 years, I can help you answer the question: “How much auto insurance do I need?”
Car insurance requirements in Colorado
In Colorado, the minimum limits required on every auto policy are $25,000 in Bodily Injury per person and $50,000 for bodily injury per accident and $15,000 in Property Damage per accident. So, if you seriously injure or kill someone in a car accident and it is your fault, the injured person’s attorney can seek damages against you in the amount of $25,000 which is called your policy limits. If you injure more than one person (say there are 4 injured passengers in the other car), then your $50,000 in policy limits per accident will kick in and provide coverage for any lawsuits that may br brought against you.
How much auto insurance do I need?
If you do not have much in the way of savings or assets like cars, houses, etc., then minimum limits may be ok. However, if you have assets that the injured party can go after, then you would definitely want to purchase more insurance to protect you. For example, you would purchase $100,000 in bodily injury coverage per person and $300,000 per accident. This would protect your assets more than the minimum policy of $25,000/$50,000. Also, there is an important coverage that everyone needs to have and that is called Medical Payments coverage! This will cover you if you are injured and need medical treatment. Medical bills can mount up quickly and health insurance may not be sufficient so I always recommend that Med Pay coverage is purchased. For example, if you purchase $10,000 in Med Pay, then your insurance company would be responsible for paying up to $10,000 in medical bills. With one trip to the ER via ambulance, this Med Pay coverage can disappear quickly so you may want to purchase $25,000 or more. It is fairly cheap coverage to purchase.
A personal injury lawyer with over 10 years of experience, Ryan Malnar serves Colorado Springs with honesty & integrity.